Boeing reports earnings tomorrow (10/20)

Boeing Company (NYSE:BA) shares have fallen 50% in this past year, their ongoing strike is costing them $100 million or more per day in deferred revenue, and now shareholders have to worry about another earnings call? 

Wall Street analysts surveyed by Thomson Reuters, on average, expect third-quarter earnings of 99 cents per share on revenue of $14.66 billion.

Some analysts have cut their earnings estimates to account for the lower third-quarter deliveries. "For the sake of conservatism, we now assume that the strike will last for two months and are adjusting our delivery and earnings estimates," Bank of America's Nourse, who has a "Neutral" rating on the stock, wrote in an Oct. 6 note.

Revived contract talks between Boeing and its striking machinists recently collapsed, and the labor standoff appears likely to continue well into November and perhaps longer. Neither side appears to have softened its position on issues of job security, pay, retirement benefits or medical coverage.

In July, Boeing raised its outlook for spending on commercial airplanes over the next 20 years by 14 percent, helped in part by an expected 5 percent rise in worldwide air travel and the demand for new, more fuel-efficient planes.

The problem for existing Boeing shareholders is what if the Street doesn't like the outcome of tomorrow's call, what if the guidance is worse than expected?

Despite shares trading as low as $46, it means nothing in this brutal market place.  If you haven't made a position in Boeing yet, wait for after the call, this stock will return to greatness, but it's going to take time.

If Boeing can get this strike behind them, determine the damage of how much the delays have cost them and give a clear plan to shareholders of how they are going to make a comeback, then you can invest your dime with Boeing.  Until that time, it's best to wait on the sidelines and let Wall Street take them for a ride.

Disclaimer: No Positions in BA